FRANKFURT, June 11 (Reuters) – Many euro zone banks are still far from meeting accounting rules on the provisions needed to protect against loan losses, despite some progress in factoring in climate risks, the European Central Bank’s top supervisor said on Tuesday.
A decade-old accounting standard designed to avoid a new banking crisis requires lenders to make an upfront provision when they make a loan, and then a fuller one if there are signs of potential default, rather than waiting for it to go unpaid.
Source: REUTER
